Multicompany configuration drivers

Various factors underlie the decision to set up a multicompany structure, ranging from the available hardware configuration to the geographical spread of your organization.

You must consider these critical decision points to determine the requirements for a multicompany structure:

  • Currency requirements must be examined and aligned with one of the currency systems available in LN.
  • Planning constraints and capabilities result in multiple logistic company considerations.
  • Legal entities with entity-specific balance sheets must be mapped to separate financial companies.
  • One standard cost price for each item or a separate cost price for each logistic company in LN can be a factor in deciding the number of logistic companies needed in a multicompany structure.
Note: If the multisite functionality is activated, standard costs can be specified by enterprise unit, which can significantly reduce the number of logistic companies that you need to set up to define the standard costs of an item. See the User Guide for Enterprise Structures (Ucomentstructug).